As Abu Dhabi’s FAB investigates a $35 billion offer, StanChart is still in the running.

Dhabi's FAB investigates

This comes after First Abu Dhabi Bank droped pursuit of Standard Chartered bid

When the lock-up restrictions from its previous unsuccessful bid expire, First Abu Dhabi Bank (FAB.AD) (FAB), the largest lender in the United Arab Emirates, may reopen a potential offer for Britain’s Standard Chartered (STAN.L), according to a Thursday report by Bloomberg News.

Shares of StanChart increased up to 9% following the news story. FAB could not immediately be reached for comment, and a spokeswoman for StanChart declined to address the report.

On January 5, FAB revealed it had thought about making a bid for London-listed Standard Chartered but had now decided against it.

According to Bloomnberg, the Abu Dhabi lender is thinking of resuming the offer once a lock-up clause that precludes it from doing so immediately expires, offering $30 billion to $35 billion versus StanChart’s market value of $24 billion.

According to takeover regulations in the United Kingdom and Hong Kong, FAB cannot make a proposal for StanChart within six months of the termination of the prior possible bid without the board of the British bank’s approval or in the absence of a competing takeover.

Due to its comparatively low pricing and exposure to rapidly expanding markets in Asia, Africa, and the Middle East, StanChart has been the topic of acquisition rumors for years; nevertheless, practical and legal challenges have prevented the successful completion of any such approach.

Any agreement would be extremely difficult to implement in practice, according to analysts, because of additional practical considerations like potential resistance from American authorities to the takeover of a significant dollar-clearing bank.

In the past, JPMorgan and Barclays were among the Western players connected to the developing markets-focused StanChart; however, more recently, banks from the Middle East, which are currently rich with cash, have begun to emerge as prospective candidates for such partnerships.

In the wake of Russia’s invasion of Ukraine, the Gulf region is experiencing an economic boom driven by increasing oil prices, with banks and sovereign wealth funds actively seeking out business opportunities.

In October, Saudi National Bank revealed that it will stake up to 9.9% of its investment, or $1.5 billion, in Credit Suisse.

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Press release

Vi Commits to Enhancing Network Capabilities for Customers in Uttar Pradesh and Uttarakhand

Its immediate post-FPO focus will be on improving indoor network experience and creating more capacity   After the recent success of its Follow-On Public Offering (FPO) which raised Rs 18000 crore, leading telecom operator Vi today has reaffirmed its commitment to the states of Uttar Pradesh (UP) and Uttarakhand.   Uttar Pradesh and Uttarakhand are […]

Read More

Morgan Stanley Stays Bullish on Zomato, PB Fintech Amid Internet Stock Surge

In the ever-evolving landscape of internet stocks, Morgan Stanley has reaffirmed its bullish stance on two prominent players: Zomato and PB Fintech. Despite recent market volatility, the global financial services firm remains optimistic about the future prospects of these companies. Let’s dive into the details of why Morgan Stanley is maintaining its positive outlook on […]

Read More

The Gemini mobile app from Google is now available in India and supports nine regional languages.

The GenAI chatbot Gemini’s mobile app, which now supports nine Indian languages in addition to English, has been released by tech behemoth Google in India. The debut was announced on X by Sundar Pichai, the CEO of Google. Wonderful news! We’re launching the Gemini mobile app in India today; it’s accessible in nine Indian languages […]

Read More